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Tiger Airways spokeswoman Vanessa Regan said the airline was optimistic it would be able to resolve the safety concerns with CASA.

“We voluntarily decided to suspend all ticket sales in the best ­interests of our customers, and that’s just really to provide them with some ­clarity," she told Network Ten.

Tiger Airways stopped selling tickets in Australia in response to repeated warnings from consumer regulators on Monday and Tuesday that the troubled airline could face legal action.

Australian Competition and Consumer Commission chairman
Graeme Samuel
said Tiger Airways had been “extraordinarily slow" in responding to warnings from himself and state-based competition regulators that the airline could be in breach of consumer laws.

Mr Samuel said he had been “a bit bemused that they don’t heed advice", given the reputational damage the airline had suffered.

The federal government warned on Tuesday that domestic travellers could be saddled with big rises in airfares if Tiger went out of business.

“There are likely to be price rises if they are taken out of the market because . . . it reduces competition,’’ a spokeswoman for Tourism Minister
Martin Ferguson
said.

“There will be price rises. Low-cost carriers create enormous ­competition in the market, which ­benefits the leisure sector."